Investors using Xend Finance can now purchase tokenized American assets through Risevest, yet regulatory restrictions limit access to this service across Africa.
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In a significant move, African fintech company Risevest and stablecoin provider Xend Finance have joined forces to enable Africans to invest in global, tokenized U.S. assets using stablecoins like USDC and USDT. This collaboration aims to break down barriers and provide real-world investment opportunities to Africans, thanks to the transparency and security offered by blockchain technology.
Urum, a fintech expert, has highlighted that while tokenization makes it easier for Africans to access global investment markets, regulatory barriers remain a major challenge. However, this partnership between Risevest and Xend Finance could be a game-changer, as it adheres to global legal requirements, with offshore entities registered in the Caribbean and the United States.
Risevest provides the infrastructure by integrating its APIs into Xend Finance’s platform. This integration allows users to invest their stablecoins in fractional shares of tokenized real-world assets—such as U.S. stocks and real estate—via Risevest’s platform. Investments are made in the U.S. market, and yields are earned, with the proceeds to be repatriated to Xend Finance as returns on its users' investments.
One of the key benefits of this partnership is that it allows users to access dollar-based assets starting from as little as $5. Moreover, users can earn yields on their crypto holdings, benefiting from the transparency and security offered by blockchain technology.
Risevest's U.S. licenses also enable the investment offerings to include real estate alongside equities, broadening Xend Finance’s product offerings. This combination of decentralized finance with tokenized real-world assets facilitates cross-border investment access for Africans, who are often restricted by local market limitations and regulatory challenges.
This partnership is part of a growing trend, with traditional financial companies incorporating blockchain technology into their product offerings. For instance, Traditional financial company Risevest is another name on this growing list, having announced a U.S. broker-dealer license this year, enabling access to global markets for African investors.
Other notable developments in this space include partnerships between global credit and debit card issuer Mastercard and crypto payments platform Moonpay, allowing users to transact directly with their stablecoin balances. Similarly, in April, Nigerian-based fintech Flutterwave joined stablecoin infrastructure firm Circle's payment network for settling cross-border transactions using stablecoins. In May, the large traditional payments company Stripe expanded its offerings into more than 100 markets by launching a stablecoin-based payments feature.
In conclusion, the partnership between Risevest and Xend Finance represents a significant step forward in making global investment opportunities more accessible to Africans. By leveraging blockchain technology and adhering to global legal requirements, this collaboration could pave the way for a new era of cross-border investment and financial inclusion.
- The partnership between Risevest and Xend Finance utilizes blockchain technology to provide Africans with real-world investment opportunities in U.S. assets using stablecoins.
- While tokenization offers Africans easier access to global investment markets, regulatory barriers still pose a challenge, but this partnership adheres to global legal requirements.
- Risevest's API integration with Xend Finance's platform allows users to invest in fractional shares of U.S. stocks and real estate for as little as $5, earning yields and benefiting from blockchain's transparency and security.
- Traditional financial companies, such as Risevest, are incorporating blockchain technology to provide access to global markets for African investors, expanding product offerings and financial inclusion.
- Notable developments include partnerships between Mastercard and Moonpay, Flutterwave and Circle, and Stripe, all focusing on cross-border transactions using stablecoins.
- This collaboration between Risevest and Xend Finance represents a significant stride in making global investment opportunities more accessible to Africans, potentially signaling a new era of cross-border investment and financial inclusion.
